How can Bangladesh's private sector engage with the Green Climate Fund?

This toolkit provides guidance for the private sector in Bangladesh on how to access and engage with the Green Climate Fund (GCF), specifically through the Private Sector Facility (PSF). It outlines the accreditation process for becoming a National Implementing Entity (NIE), the role of executing entities, and the available readiness and capacity support.

• The Green Climate Fund (GCF) is a financial mechanism designed to support developing countries in achieving low-carbon resilient development. As of May 2016, it had raised US$10.2 billion in pledges from 42 governments, with the United States, Japan, United Kingdom, France, and Germany being the top five contributors.
• Bangladesh's National Designated Authority (NDA) is the Economic Relations Division (ERD) of the Ministry of Finance. The NDA is responsible for strategic oversight of national priorities, convening stakeholders, nominating entities for accreditation, and approving readiness support.
• Private sector entities in Bangladesh can access GCF funds through two primary paths: by seeking accreditation as a National Implementing Entity (NIE) to manage funds directly, or by acting as an executing entity that implements projects through an already accredited NIE or Multilateral Implementing Entity (MIE).
• The GCF uses a 'fit-for-purpose' accreditation approach, which allows entities to be accredited at different levels based on their fiduciary, environmental, and social standards. This tiered system classifies applicants according to the scale, nature, and risks of their proposed activities, with project sizes ranging from 'Micro' (US$0–10 million) to 'Large' (over US$250 million).
• To be accredited as an NIE, an entity must demonstrate legal status, a robust institutional system, and a track record of fiduciary, environmental, and social standards, including a gender policy. Fiduciary standards are split into 'basic' (administrative and financial capacities, transparency, and accountability) and 'specialised' (project management, grant award mechanisms, and on-lending/blending).
• The Private Sector Facility (PSF) aims to address market failures that prevent private investment in risky climate projects. It focuses on two main dimensions: mobilising large-scale funding from institutional investors (using instruments like Green Bonds, commercial papers, and syndication) and supporting local micro, small and medium-sized enterprises (MSMEs).
• The GCF has allocated up to US$200 million for the MSME programme, with a regional cap of US$65 million for Asia, Africa, and Latin America. Support for MSMEs can include an ecosystem approach (e.g., incubators), a staged finance model for bankable projects, and innovation funds.
• Executing entities can submit spontaneous project proposals or respond to Requests for Proposals (RFPs). Proposals are evaluated based on impact potential, paradigm shift potential, sustainable development potential, responsiveness to recipients' needs, country ownership, and efficiency/effectiveness.
• The GCF provides readiness support of up to US$1 million per year to applicant countries to build capacity and develop project pipelines. While not providing dedicated funding for private sector capacity, businesses can access information and planning support through the NDA. Additionally, the Project Preparation Facility (PPF) provides grants for pre-feasibility studies, risk assessments, and other project preparation activities for accredited entities.
• As of mid-July 2016, several potential National Implementing Entities in Bangladesh—including the Infrastructure Development Company Ltd (IDCOL), Palli Karma-Sahayak Foundation (PKSF), and the Department of Environment (DoE)—had lodged accreditation applications, though none had received accreditation at the time of publication.

APA

Rai, N., Hossain, I., Soanes, M., Fayolle, V., Nasir, N., & Mahid, Y. (2016). How can Bangladesh's private sector engage with the Green Climate Fund? Climate and Development Knowledge Network. http://cdkn.org/wp-content/uploads/2016/11/How-can-Bangladeshs-private-sector-engage-with-the-Green-Climate-Fund.pdf

Chicago

Rai, Neha, Iftekhar Hossain, Marek Soanes, Virginie Fayolle, Naznin Nasir, and Yousuf Mahid. How can Bangladesh's private sector engage with the Green Climate Fund? Climate and Development Knowledge Network, 2016. http://cdkn.org/wp-content/uploads/2016/11/How-can-Bangladeshs-private-sector-engage-with-the-Green-Climate-Fund.pdf.

Wikipedia

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BibTeX

@techreport{rai2016how, author = {Rai, Neha and Hossain, Iftekhar and Soanes, Marek and Fayolle, Virginie and Nasir, Naznin and Mahid, Yousuf}, title = {{How can Bangladesh's private sector engage with the Green Climate Fund?}}, institution = {Climate and Development Knowledge Network}, year = {2016}, month = jul, url = {http://cdkn.org/wp-content/uploads/2016/11/How-can-Bangladeshs-private-sector-engage-with-the-Green-Climate-Fund.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }